Branson praises fly-away Stelios

VIRGIN boss Sir Richard Branson gave a surprise farewell tribute to Stelios Haji-Ioannou, who is stepping down as easyJet chairman. Branson said: 'Millions of people who could not afford to travel are now travelling - and he has done it with great style and panache.'

Stelios, 35, son of a Greek Cypriot shipping tycoon, wants to groom other businesses, including car rental and internet cafes, for possible flotation. New ventures could include a no-frills cinema, and a bus service to compete with National Express. Ferry boats, cruise ships, nurseries, driving schools and budget hotels are also in his sights.

His successor, former Vickers chief executive Sir Colin Chandler, said Stelios, with 22% of easyJet, will return as chairman only if 'something goes badly wrong'.

Annual profits, including two months' contribution from Go, surged 78% to a record £71.6m. Not counting Go, easyJet passengers soared 43% to 10.2m. Growth is expected to slow to 25% this year. Average fares were pushed down 4% to £46 to keep planes full.

The company is buying 120 new Airbuses. Future growth will come from 'joining the dots' between the 32 cities it serves, and the 15 added with Go.

Anthony Bor at Merrill Lynch downgraded the shares, down 63p to 337p after a strong run. He sees challenges ahead, including servicing the expanded fleet.